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Record Low for 36-48 Month-Old Used Cars in the UK
The automotive landscape in the UK is undergoing significant shifts as the volume of used cars aged 36 to 48 months plummets to record lows. According to the latest data from Indicata’s Market Watch report, only 23% of the used car inventory falls within this lucrative age bracket as of early August. The drop can be traced back to restricted new car supplies and altered fleet replacement cycles exacerbated by the residual impacts of the COVID-19 pandemic.
Market Dynamics: Rising Demand Amidst Limited Supply
In a market where typically, three to four-year-old vehicles are seen as the sweet spot for both wholesale and consumer interests, demand currently outstrips supply, leading to a rise in prices for this age group. Dean Merritt, Indicata UK’s head of sales, notes that “our used vehicle data shows just how long it has taken to flush the impact of Covid through our used marketplace.” This pattern illustrates broader market dynamics where 31% of the current used stock is now under two years old, predominantly made up of nearly new electric vehicles (EVs).
The EV Impact: Tesla Leading the Charge
Interestingly, the Tesla Model 3 is making waves within the used market, emerging as one of the fastest-selling used cars not only in the UK but across Europe, demonstrating how electric models are reshaping consumer preferences. With prices for older models now dipping below £10,000, it presents an attractive option for first-time used EV buyers.
As nearly every corner of the market feels the impact of supply constraints, the picture of the UK's used car sector is becoming clearer, with a noticeable bifurcation emerging among different age groups. As we look ahead, it will be interesting to see how these trends evolve and what they will mean for both consumers and the automotive industry.
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